Policy Implementation August 23 2018 Policy Implementation Item

Policy Implementation August 23, 2018

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Cal. Fresh Ending Cash Out for SSI/SSP Recipients Policy TBD SCR 101471 SCR 203103 The Legislative budget bills include agreement to fund the SSI (Supplemental Security Income) Cash Out initiative which would reverse California’s current law that prohibits SSI and/or SSP (State Supplementary Payment) recipients from receiving Cal. Fresh benefits. This policy contains several components which will be implemented no later than August 1, 2019. ACL 18 -90 Analysis Release 19. 07 Ending Cash Out applies to three groups of individuals and/or households: Group 1 - SSI/SSP beneficiaries who are new Cal. Fresh applicants who will no longer be precluded from Cal. Fresh eligibility, as well as current Cal. Fresh households who have an SSI/SSP member(s) who will be added to the case. ACL 18 -91 ACL 18 -92 Group 2 - Supplemental Nutrition Benefit (SNB) program: Cal. Fresh households who have an excluded SSI/SSP member and as a result of this policy will experience a reduction in the Cal. Fresh allotment once the SSI/SSP member and their income are added to the Cal. Fresh household budget. Group 3 – Transitional Nutrition Benefit (TNB) program: Cal. Fresh households who have an excluded SSI/SSP member and as a result of this policy will lose their eligibility to Cal. Fresh benefits once the SSI/SSP member and their income are added to the Cal. Fresh household budget. The legislature has agreed to hold these households harmless by supplementing their benefits via a new state-only program. -Continued on next slide 2

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Cal. Fresh Ending Cash Out for SSI/SSP Recipients Policy TBD SCR 101471 SCR 203103 CDSS published ACLs 18 -90, 18 -91, and 18 -92 on July 31, 2018. Analysis On August 13, 2018 CDSS kicked off the Reversing SSI Cash-Out Automation meetings. This group includes CDSS, CWDA, SAWS and the counties. The purpose of these meetings are to discuss questions related to the policy, implementation strategy, and automation timeline. These meetings are held biweekly through October at the Cal. ACES North location. ACL 18 -90 ACL 18 -91 ACL 18 -92 Analysis Release 19. 07 Cal. ACES Update: The design for this change will be a solution that will work for 58 counties. The Cal. ACES teams are reviewing the final ACLs and doing a final system impact analysis. Project design meeting will begin the week of August 20, 2018 and will include staff from the Cal. WIN Project. 3

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Funding for Emergency Caregivers with Placement of Children and Non. Minor Dependents prior to Resource Family Approval 7/1/2018 SCR 101497 SCR 203634 ACL 18 -75 Description – Cal. ACES Implementation Effort Design Per ACL 18 -33, all counties were required to provide the Short-Term, Interim payment (AB 110) to caregivers who had taken placement of a child prior to completing the Resource Family Approval (RFA) process between 3/30/18 Design and 06/30/2018. Release 19. 03 Effective July 1, 2018, all counties must provide a payment equivalent to the basic level rate for a resource family to the Emergency Caregiver (EC) of a child. However, unlike the Short-Term, Interim funding, the EC funding will be exclusively funded through the Emergency Assistance (EA) Program, aid code 5 K. Cal. ACES Update: Phase III- Long Term Funding for Emergency Caregivers with Placements of Children Prior to RFA Approval will include: • Updating the eligibility rules to determine eligibility for the different types of EA funding. • Automating the pay code determination • Automating the NOAs 4

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Assistance with Diaper Cost Supportive Services 4/1/2018 SCR 100986 (Phase I) SCR 202085 (Phase I) Implemented The passage of AB 480 requires County Welfare Departments (CWD) to provide thirty dollars ($30) per month to Cal. WORKs Welfare to Work (WTW) recipients to assist with diaper costs for each child who is under 36 months of age. ACL 18 -38 indicates individuals must have a qualifying child under 36 months of age and be a participant in the WTW program. 18. 05 CDSS responded to the NOA CRPC on 6/11/18. The remaining question about overpayments will be addressed in a Q&A letter due out later this summer. ACL 18 -38 SCR 100305 (Phase II) SCR 59192 (Phase II) Testing Release 18. 07 (8/17/18) Cal. ACES Update: Phase I – Implemented the Need Category Other Supportive Services and a Need Type of Diaper Allowance. No State report or claiming changes were made in Phase I. Tracking issuance for claiming and reporting this phase is a manual process done by the county. Phase II - Will implement an automated batch process that will automatically identify eligible cases and issue the appropriate number of $30 issuances per case. Phase II is tentatively scheduled for implementation on 8/17/18. The first month with full automation is September 2018. Modification to SAR 7 and RE NOAs will include the language for Diaper Allowance. Automatically generate the NA 823 when Diaper Payment is approved or discontinued. Cal. ACES continues to discuss with the Committee, CWDA and CDSS on the approach for processing historical months. 5

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Cal. Fresh Able -Bodied Adults without Dependents (ABAWDs) 1/1/2017 Fixed Clock SCR 7215 Phase II SCR 57971 Phase II Design Due to the California’s high unemployment rate, it’s anticipated that in 2018 only three counties (Santa Clara, San Mateo, and San Francisco) will be subjected to the ABAWD policy. Therefore, in September CDSS submitted another ABAWD waiver to exempt the remaining 55 counties through 2018. The ABAWD waiver was approved by FNS and is valid 9/1/20188/31/2019. Release 19. 01 Release 19. 01 ACIN I-11 -16 ACIN I-88 -16 ACL 18 -08 ABAWD Handbook 8/31/2019 Waiver Expires At Self Sufficiency in March, CDSS reported that they are still waiting to hear from FNS on the waiver approval. However, based on the unemployment numbers, they feel confident that the waiver will be approved. The ABAWD Handbook was published on 1/26/18. The ABAWD handbook is a living document and version 2. 0 is in progress. The critical items on which the State needs to provide direction are: NOAs/Forms, Exemptions including geographically waived areas, and the MEDS interface. In February CDSS kicked off the SAWS ABAWD Automation meetings. These meetings will address SAWS questions associated to automating the ABAWD policy. Considering the Cal. ACES counties will continue to be on an ABAWD waiver until 9/1/2019, all the recent policy changes, and those that are in progress, the Cal. ACES Project believes we need to move the ABAWD Phase II implementation to January 21, 2019. CDSS is in agreement with moving Cal. ACES moving the ABAWD implementation to January 21, 2019. Cal. ACES Update: The design team, consortium staff, and QA staff are working on documenting system changes and participating in the SAWS ABAWD Automation meeting with CDSS. 6

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Child Support SB 380 11/1/2018 SCR Phase I 101374 SCR Phase I 202806 Release 18. 07 Effective November 1, 2018, a Cal. WORKs (CW) applicant or recipient will have the option to exclude a stepsibling or half-sibling from the AU in order to keep one hundred percent of any child support payments made on behalf of that child, as long as the following apply: • The amount of child support received each month for that child is greater than the cash aid amount for the child; and • Child support received for the child has been consistent. Phase II SCR 100390 Phase II SCR 200785 Design Release 18. 09 ACL 18 -82 Any child support payments received pursuant to SB 380 would not be treated as income when determining Cal. WORKs eligibility or grant amounts. The final ACL was published on August 1, 2018, which included the final CW 52. Cal. ACES Update: Phase I – Mass Mailing will occur on 9/20/18. For cases that become active after 9/20/18, Counties are responsible for manually mailing the CW 52. Phase II -The design team, consortium staff, and QA staff are working on documenting the requirements and the design. 7

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Changes to Cal. Fresh Reporting Requirements ACL 18 -18 5/8/2017 SCR 100532 SCR 54311 Rejected CDSS submitted a waiver to FNS to allow the CF 30 to be mailed along with another NOA. FNS approved a two year waiver, which is effective May 1, 2018 through April 30, 2020. The waiver allows California to maintain current practice of sending the notice of adverse action, either the 960 X and 960 Y, which means the CF 30 does not have to be mailed. However, all other policy in ACL 18 -18 still applies. CDSS provided a draft ACL with the waiver conditions on 5/15/18. Cal. ACES Update: ACL 18 -18 increases the $50 threshold for reporting changes in unearned income to $100. This threshold is not automated and is managed by the county’s business process. The CW/CF committee opted to continue managing this without automation. Both SCRs have been rejected. Notice of Action Requirements at Annual Renewal or Change in Circumstance Draft ACWDL received on 4/17/18 SCR 100708 SCR 202724 Analysis Release TBD No change since last meeting. In accordance with Federal Regulations, counties are required to send a Notice of Action to MAGI beneficiaries who have no change in their eligibility or level of benefits at annual renewal or when an eligibility determination at change in circumstance results in resetting the annual renewal date. In the draft ACWDL it state that SAWS must make all necessary programming changes to automate the use of the MAGI and Non-MAGI NOA snippet language included within this ACWDL no later than six months after the release of this ACWDL. The final ACWDL is pending. Cal. ACES Update: The design team, consortium staff, and QA staff reviewed the draft ACWDL and provided comments to DHCS on 4/24/18. 8

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort AB 959 / SB 179 Gender Recognition ACT 7/1/2018 SCR 101841 SCR 202458 Analysis CDSS was working on revising the SAWS 2 Plus to include additional programs, newly passed legislative requirements to track sexual orientation/gender identity (SOGI), incorporate the SAWS 2 A SAR information and align with the CMS requirements for the health care program application requirements. As of December 2017, this effort is on hold. Release TBD Draft ACL/Form Received 7/30/18 At the December SAWS policy meeting, CDSS informed SAWS that they are working on a modified version of the SAWS 2 PLUS which will only include five questions. The modified version will be known as the SAWS 1 Plus. The first five questions of the streamlined SAWS 2 Plus application, now make up the State Automated Welfare Systems (SAWS) 1 Plus. On July 31, 2018 CDSS notified SAWS that the SAWS 2 PLUS and the SAWS 1 PLUS revisions are on hold. However, they are developing a new form CW 2223 that will be used to document the applicant(s)/recipient(s) to answer the SOGI questions. SAWS received the draft ACL and CW 2223 form on July 30, 2018. Cal. ACES sent comments to CDSS on the draft ACL and form in early August. 9

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort Add VUR Functionalit y for Non Assistance Cal. Fresh (NACF) ACL 13 -17 10/1/2013 SCR 619 Implemented Analysi s No change since last meeting. CW/CF Committee High Priority Cal. Fresh SCRs: Due to a waiver denial, CWDs must act on any NACF changes considered verified upon receipt (VUR). CDSS has drafted an ACIN to published the VUR chart (Mid Period Guide) and a Q&A. CDSS sent out the draft ACL on 2/8/18. Releas e TBD C-IV Update: Design is pending receipt of CDSS policy Q&A. LRS Update: VUR was included in the initial implementation of the LRS System. Verification logic in LRS is different from C-IV and is automated. LRS verification logic is based on Report Date and Change Reason logic. 10

Policy Implementation Item Policy Effective Date C-IV Status LRS Status Description – Cal. ACES Implementation Effort MC RE Informational Packets for Application and Renewal MEDIL I 14 -54 2014 SCR 924 SCR 52371 No change since last meeting. Counties are required to provide the publications listed in this MEDIL to all households at the time of initial application when submitted to the county directly in person, by phone, by mail or through e. Notification and at renewal. Implemented Analysis Release TBD Release 17. 05 C-IV Update: The approach was to create three informational packets, one for applications and two for renewals. Due to the substantial increase in project operations cost and a shift in county postage cost, this item was discussed at PSC in 2017. OSI indicated there was no additional funding for this effort. To avoid the cost of mailing these packets, PSC sent a Consortium Request for Policy Clarification (CRPC) to CDSS and DHCS requesting the packets be posted to the recipient’s C 4 Y account and if a PDF link to each packet on C 4 Yourself (C 4 Y) would satisfy the policy requirement. Note: Due to the increase in volume that these automated packets will would create, the Project would have to restructure the contract with the print center vendor. PSC approved the following C-IV implementation approach: The counties will continue to manually mail the informational packets as described in MEDIL I-14 -54 until such time that State funding can be secured. When State funding is available and DHCS updates the PUB 68, the C-IV Project will finalize the SCR and present it to the Correspondence Committee for review and approval. Per DHCS on 10/26/17 the revised PUB 68 has been revised and split into an English and Spanish version. A draft version of the PUB 68 was sent for stakeholder review on 12/8/17. LRS Update: The forms are available in the template repository for end users to manually distribute to participants with the exception of the brochures that are targeted for 17. 09 implementation. Also, no decision has been made on posting the publications to the 11 participant’s YBN account.